Wolf Administration: $3.2 Million in New Funding Approved to Lower Energy Costs and Create Hundreds of Jobs in Two Pennsylvania Counties

Harrisburg, PA – Department of Community and Economic Development (DCED) Secretary Dennis Davin announced the approval of $3.2 million for three new Pipeline Investment Program (PIPE) projects through the Commonwealth Financing Authority (CFA), that will improve infrastructure, save energy, and create hundreds of new jobs in Indiana and Washington counties.

“The PIPE program is essential in helping to extend pipelines and bring natural gas resources to Pennsylvania homes and businesses,” said Sec. Davin. “Investments like these create jobs, can reduce energy bills, and have a positive impact on the commonwealth’s communities.”

The approved projects are as follows:

Indiana County
  • Indiana County Development Corporation was approved for $1.5 million in Pipeline Investment funds to extend a natural gas pipeline from the EXCO regulation station to the Homer City Generating Station in Center Township. The station is a coal-fired power plant that sits on 2,400 acres and employs 129 people. The proposed pipeline expansion will be developed and constructed by Indiana County Development Corporation and owned by Peoples Gas. A 4-inch line will be run 11,500 feet to the adjacent side of the station. The extension will provide natural gas access to 50 residential properties. Pipeline Investment Program funds will be used for construction, materials, engineering, and administration costs. The total project cost is $3,466,695.
Washington County
  • Mon Valley Alliance was approved for $331,826 in Pipeline Investment funds to extend a natural gas pipeline to the Alta Vista Business Park in Fallowfield Township. Mon Valley Alliance, in cooperation with Peoples Gas, plans to install 11,423 linear feet of 6-inch diameter natural gas pipeline that will extend to the Alta Vista Business Park. The current 4-inch diameter gas line is unable to serve larger industrial and manufacturing businesses that are attracted to the business park and the new 6-inch line will accommodate these types of businesses. The pipeline will provide natural gas access to 17 residential parcels along the extension, provide service to two new business park projects, and increase the gas supply for the remaining vacant business park parcels. The two new businesses will bring more than 220 jobs to the business park. Additionally, four lots have been purchased by businesses that will bring approximately 190 jobs once they are developed. Pipeline Investment Program funds will be used for construction, tapping, and administrative costs for installing 11,423 linear feet of natural gas pipeline. The total project cost is $663,653.
  • The Perryman Company was approved for $1,369,096 in Pipeline Investment Program funds to install a natural gas pipeline in the California Technology Park in Coal Center Borough. In 2005, the company purchased 40 acres in the California Technology Park and has since developed the site to house their titanium melt operations which include blending, melting, and breakdown facilities. The remaining space available on this parcel will be developed into a new forging operation, which will provide the Perryman Company with the opportunity to expand production capabilities and bring additional high-quality, skilled jobs to the region. The company estimates that within one to three years they will create 20 to 30 new jobs and within 10 years they will create 110 to 200 jobs. The Perryman Company needs increased capacity at their site to operate new furnaces and feed the new forging operation. The proposed pipeline expansion will be developed, constructed, and owned by Columbia Gas of Pennsylvania. An 8-inch line will be run 8,700 feet to the rear of the 625 Technology Drive parcel. The new service can be provided for the current eight businesses in the Technology Park and for 15-20 residential properties. Pipeline Investment Program funds will be used for construction, materials, rights-of-way, engineering, and administration costs. The total project cost is $3,284,112.

Though Pennsylvania has a vast network of natural gas pipeline infrastructure, some areas require funding assistance to construct the “last mile” of the pipeline to extend that network to businesses and residents. Created by the Wolf Administration in November 2016, PIPE provides grants to construct the last few miles of natural gas lines to business parks and existing manufacturing and industrial enterprises, which will result in the creation of new jobs in the commonwealth while providing access to natural gas for residents. Applicants eligible for PIPE funding include businesses, economic development organizations, hospitals, municipalities, and school districts.

More information about the Commonwealth Financing Authority can be found on the Department of Community and Economic Development website, and be sure to stay up-to-date with all of our agency news on Facebook, Twitter, and LinkedIn.

MEDIA CONTACT:
Penny Ickes, DCED, dcedpress@pa.gov

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